Clarification:
This morning's article "IWL falls despite record result" may have been confusing. The price had actually increased 1 cent over the two-day period, but fell from a high on Wednesday of $4.98 to close on Thurdsay at $4.86.
Article:
A strong first half result by financial planning software provider IWL failed to impress the market yesterday.
The group's share price slipped 9c to $4.86, despite the group reporting record operating earnings for the half year to December 31, 2006.
IWL's underlying profit was $13.2 million up 15 per cent on the record $11.5 million achieved in the previous corresponding period.
While the result was driven by a stronger December quarter and robust equity market conditions, it was still below IWL's internal targets, said chief executive Otto Buttula.
According to Buttula, the result was impacted by higher than usual merger and acquisitions costs, a very hot Perth employment market and other non-recurring operating integration and rationalisation expenses.
However, Buttula said he forecast that all of these extraordinary expenses incurred during the period would subside, particularly the Perth employment costs factor, as platform integration projects are completed over the next 12 months.
The company also confirmed that its interim dividend will be no less than the 12c per share it paid in the previous corresponding period.
IWL will formally release its half-year results for the six months ending December 31 on February 22.
